Views on Corporate Social Responsibilities
Corporations practicing stakeholder management will be more sustainable. Discuss.
Introduction
The perceptivity of sustainability is both in the sense of achieving long-term success and as survivability of a corporation (Zink, Steimle & Fischer 2008). Dunphy, Griffiths and Benn (2003) conceive corporations as channels of social purpose, constructed within society to attain useful social objectives. Henceforth, corporate social responsibility commits a significant role towards the sustainability of corporations. Both corporate social responsibilities and sustainability, and its related concepts influence all aspects of business. Chandler and Werther (2010) acknowledge the understanding of corporate social responsibilities as an aim to define the future of our society.
However, the apprehension of corporate social responsibility determines the corporate governances. As the question arises, does practicing stakeholder management aid corporations to be more sustainable? In this essay, classical and contemporary view of governance on corporate social responsibilities will be put into discussion before coming to a conclusion under strategic sustainability. In addition, theoretical frameworks and real world corporate cases will be reason about in the respective governances.
Classical View on Corporate Social Responsibilities
“The only social responsibility of business is to maximise profits” - Friedman’s frequent saying.
In reference to Friedman’s classical view, the purposes for business to exist are for distributing products and services to society, and thereafter, for creating economic value which subsequently generate profits for shareholders. Keinert (2008) trusts that the mangers are in control to maximise these revenue for shareholders, obligate by the employment contracts as agents for the shareholders of the firm, the principals. It is also emphasised by Zu (2008)
Introduction
The perceptivity of sustainability is both in the sense of achieving long-term success and as survivability of a corporation (Zink, Steimle & Fischer 2008). Dunphy, Griffiths and Benn (2003) conceive corporations as channels of social purpose, constructed within society to attain useful social objectives. Henceforth, corporate social responsibility commits a significant role towards the sustainability of corporations. Both corporate social responsibilities and sustainability, and its related concepts influence all aspects of business. Chandler and Werther (2010) acknowledge the understanding of corporate social responsibilities as an aim to define the future of our society.
However, the apprehension of corporate social responsibility determines the corporate governances. As the question arises, does practicing stakeholder management aid corporations to be more sustainable? In this essay, classical and contemporary view of governance on corporate social responsibilities will be put into discussion before coming to a conclusion under strategic sustainability. In addition, theoretical frameworks and real world corporate cases will be reason about in the respective governances.
Classical View on Corporate Social Responsibilities
“The only social responsibility of business is to maximise profits” - Friedman’s frequent saying.
In reference to Friedman’s classical view, the purposes for business to exist are for distributing products and services to society, and thereafter, for creating economic value which subsequently generate profits for shareholders. Keinert (2008) trusts that the mangers are in control to maximise these revenue for shareholders, obligate by the employment contracts as agents for the shareholders of the firm, the principals. It is also emphasised by Zu (2008)